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Friday, 30 September 2016

The procurement role is having a bigger influence on the strategic plans of
large businesses over time, guiding decisions that yield immense value. As a
result, companies continue to entrust more of their fundamental challenges and
opportunities to the procurement department. With an eye to the future,
procurement executives are embracing their new roles and developing strategies
to advance the field further.

One of the clear methods with which procurement leaders can enhance their
critical work is through good succession planning. Here are three tips to
identifying and grooming your successor.

1. Develop Criteria

First, it is important to employ one or more useful metrics to find your successor.
Longevity is a classic example. The successor needs to be at the right stage in
his or her career. Any candidate should have accrued significant work
experience, allowing that person to hone his or her decision-making skills.
Additionally, while harder to assess beforehand, expected longevity within the
new position is certainly important. The new person will likely take some time
to adjust fully to the new position and understand the nuances of the business.
If the successor is only there for a short time without a chance to prove
loyalty, the value of your hard succession-planning work is in jeopardy.

While it is important for successors to share your vision for the company, it
is also useful for the successors to have an independent streak. Creative
thinking allows them to thrive in the new position and potentially present new
approaches to continue to improve the procurement vision.

2. Bring Them Up to Speed

Once successors are identified, train them in the key technical languages for
your company, specifically financial and legal. Understanding how to liaise
with the CFO and legal team will allow successors to easily streamline the
procurement process. Successors will know how and when to work with these
entities, so they can better align their strategy with the corporate vision.
Inter-departmental disagreements are likely to decrease as a result. But when
disagreements do occur, successors will know how to address them
professionally.

3. Keep Your Team Updated

Keeping your team informed throughout the transition may be equally as
important as the transition itself. A strong team that is behind their new
leader will positively impact the work of that new leader. If the hire is in
house, an appropriate strategy is to have the successor become a team leader on
several projects before the change is announced. Allow the rest of the staff to
buy into the leadership and skills of this person. If the person is an external
hire, make sure to sell him or her to your procurement team first.

There will likely be reservations or hard feelings toward the new hire, which
is understandable. Talk about their feats outside of your business, and stress
how the successor can apply these strengths to improve the department and
improve team dynamics.

4. Ensuring a Successful Transition

With the procurement role becoming increasingly critical to overall business
success, it is more important than ever that executives ensure successful
transitions. Adopting these strategies will help procurement executives
successfully identify and groom their successors.

Tuesday, 23 August 2016

Many
top companies has transformed their procurement operations in profound ways to
become a real strength of their company.

On
the other hand many procurement departments are still struggling to adapt with strategic
innovation strategies and to become strong pillar for their companies, Mainly
because they remain trapped in the circle of old traditional procurement.

Working
with leading organizations as procurement consultants, we have experienced that leading organizations are always ready to adapt with new strategies according to their industry challenge and
achieve the future milestone that will make them leader in respective industry.
This challenge adoption approach has makes these companies the best.

eSourcing – or the
process of tendering via the Internet is yet a concern in terms of managing
supplier relationships. In the beginning of eSourcing, the concept was resisted
by suppliers. They were aggravated by the thought that they shall get beaten-up
over prices. Wise organizations communicated the advantages of esourcing to
supplier. Here are some advantages which can help buyer to persuade suppliers
to take part in esourcing bidding events:

1.Improved transparency and delivering a clear framework can help companies
understand supplier`s culture and how a company shall market their
goods/services.

2.Buying companies` mission, vision and values
describes in RFP or eAuction benefits suppliers to understand company goals
which helps to determine whether to do business with the buying organization.

3.Communicating contract and product
specifications, terms and delivery requirements take time for buyer to create a
formal RFP and eAuction process which enables suppliers to prepare better for
negotiation and contracting procedure.